Australian Data Flat in Sydney Before Data

 
   By James Glynn 
 

        SYDNEY--The Australian dollar was little changed Monday before a busy week of data and global events.
        At 0500 GMT, the Australian dollar was trading around US$0.9356 compared with US$0.9352 late Friday.
        On Tuesday, the Reserve Bank of Australia will announce minutes of its May 6 policy meeting when it left the cash-rate target on hold at 2.5% and told the market low rates are likely to be needed for some time.
        Economists expect the RBA to highlight low inflation risks and only tentative signs that the economy is finding new sources of growth as a decade-long mining investment boom cools.
        The cash-rate target has been at its current record low since August, with financial markets now taking bets the RBA will stay sidelined until the second half of 2015.
        The softness of the economy is likely to be evident in key consumer confidence data from the ANZ bank on Tuesday and then Westpac on Wednesday.
        Recent consumer confidence data has been extremely weak as the Liberal-National coalition government flagged a tough budget, which included tax increases and cuts to sensitive areas such as welfare.
        Economists expect the budget will hit confidence hard.
        "The Australian budget has come and gone, triggering protest marches and shrill claims that the Antipodean way of life is under threat," said Stephen Walters, chief economist at J.P. Morgan, adding that at the very least, sentiment probably has been damaged.
        Mr. Walters expects consumer confidence reports this week to show a "sharp decline."
        But with opposition political parties pledging to block many of the budget's key measures, "the long-term pain for the economy will be more modest than the headline fiscal drag suggests," he added.
        ANZ said in a note to clients that the fallout from the budget cuts could extend beyond just readings on confidence.
        "While the Budget revealed some significant changes to welfare eligibility and income taxes which are likely to weigh modestly on consumer spending over the next few years, the indirect impacts of these announcements on consumer confidence could prove to be more important," ANZ said.
        Also on the calendar this week, Reserve Bank of Australia Assistant Governor Guy Debelle and Treasury Secretary Matin Parkinson of Australia will be making separate speeches on Tuesday, and domestic wages are due Wednesday.
        U.S. Federal Reserve Minutes will be released Wednesday, and Federal Reserve officials including Janet Yellen are due to speak the same day.
        Write to James Glynn at james.glynn@wsj.com
        (END) Dow Jones Newswires

        May 19, 2014 01:28 ET (05:28 GMT)